Social Security is a dynamic program that has been changed on a nearly once-living basis.
President Trump’s executive order will completely change how benefits are paid to more than 500,000 beneficiaries.
When the calendar becomes 2026, five social security changes are expected, including potential record-breaking (this century) cost of living adjustments.
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This expenditure is not a luxury for more than 53 million retired workers who currently receive social security benefits every month. According to Gallup’s 24-year vote, 80 to 90% of retirees rely on their Social Security income to pay for their expenses.
For ninety years, social security has laid a financial foundation for older workers who can no longer provide their own. It also expanded its coverage to include workers with disabilities and survivors of deceased workers.
But this precious program is not static. The changes have been made in recent years.
On September 30, provided by President Donald Trump, Social Security will change forever. Meanwhile, once the calendar is changed to 2026, five additional Social Security changes can be made.
President Trump talks with reporters. Image source: Official White House Photos.
He has been monitoring indirect changes in Social Security since Trump’s second non-sequential term inauguration. This includes the announcement of the Social Security Agency (SSA) to lay off 7,000 employees to reduce its operating expenses, as well as strengthening methods for individual identification.
Most beneficiaries are no longer able to change their direct deposit information or register for benefits over the phone. Instead, these actions must be performed in an online “My Social Security” account that is face to face or through a two-factor authentication.
But a social security change comes directly from the president. On March 25, Trump signed an executive order (“Modernized Payment to and from Bank Accounts in the United States”) that canceled federal government paper payments by September 30, 2025. In other words, social security benefits paid by paper checks will cease within a few weeks.
The move aims to reduce the likelihood of social security scams and save money from leading social programs in the United States. Although electronic fund transfers lost less than $0.15 in the U.S. government fees, each paper check issuance was $0.50. As more than 500,000 social security beneficiaries still receive paper checks, termination of the policy will save more than $2 million a year.
The beneficiaries who still need to receive a paper check will need to deposit directly with the bank or use a direct quick card. The latter is a prepaid debit card that can be deposited into federal benefits.
But this is far from the only change, it is a way for social security to protect nearly 70 million traditional beneficiaries. When the calendar turns to January 1, the other five changes can be included.
The most anticipated change in the New Year is definitely the Cost of Living Adjustment (COLA), which was originally scheduled to be revealed on October 15. Social Security Coke is the “pay raise” beneficiaries who have received most years to offset the impact of inflation (price increases).
Following data from the July inflation report, two separate Social Security forecasts come together. Mary Johnson, a nonpartisan senior advocacy group, and independent social security and health insurance policy analyst, believes that the 2026 Coke will be 2.7%. If accurate, this would mark the first time this century has made five consecutive cost-of-living adjustments to at least 2.5%.
Although these estimates may change, 2.7% of Coke will convert an additional $54 per month for the average retired workers and provide $43 per month for the average disabled and survivor beneficiaries, respectively.
Remember, Medicare Trustee reports expecting Part B heat to rise by 11.5% next year to $206.20 per month. When combined with stubborn inflation of housing and health care services, most beneficiaries lose purchasing power in 2026 due to their social security income.
Image source: Getty Images.
Speaking of salary increases, the largest monthly social security benefits will almost certainly increase at the full retirement age.
This year, the maximum monthly expenditure for full retirement age is $4,018, an increase of $196 per month from 2024. Although it is unclear whether we will witness similar year-on-year growth, which is the highest monthly income for life-long high earners.
Only about 2% of beneficiaries are eligible for this maximum monthly salary and must meet three criteria:
They have to wait until their full retirement age to claim benefits from retired workers.
They need to have at least 35 years of qualified work history.
When calculating their monthly benefits, they need to reach or exceed the taxable income cap for all 35 years within all 35 years.
On the other hand, high-income workers can expect to open their wallets in 2026.
In 2025, all earned income (wages and wages, but not invested income) is between $0.01 and $176,000, and any income is higher than that.
The $176,100 figure is the highest taxable income cap, and most years tend to increase with the National Average Wage Index (NAWI). The only time there is almost no tax revenue cap is when there is no Coke. With a 2.7% Coke forecast for 2026, it’s a practical lockdown where workers earning more than $176,100 a year will owe more workers next year.
Social Security beneficiaries who choose to collect benefits early and who have not yet reached their full retirement age can expect to adjust their deduction thresholds in the new year.
According to the retirement income test, if you make too much and apply for your benefits early, the SSA can withhold some or all of them. For example, workers who charge benefits in 2025 and who do not reach their full retirement age can earn more than $23,400 ($1,950 per month) for every $2.
Meanwhile, early filers who will reach full retirement age in 2025 can take home $62,160 ($5,180 per month) in income and then earn $1 in earnings of $1, which is above this threshold for every $3.
These two income thresholds should increase in 2026 and allow early filers to earn more income before withholding.
Workers who receive social security disability income can also expect the threshold for ongoing spending to rise.
For example, non-blind and blind workers who earn disability income are allowed to earn up to $1,620 per month and $2,700 per month in 2025 without stopping their benefits.
These thresholds are often referred to as substantial paying activity limits and can also be locked with NAWI. As long as the cost of living adjustments to social security is positive, it indicates that the threshold for continuous disability payments should also climb.
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Social Security will change permanently on September 30, with five more changes to be near certainty on January 1, originally published by Motley Fool
